Anchor Investors Inject Nearly Rs 120 Crore into Suraj Estate Developers; IPO Subscription Starts on December 18

17 Dec 2023 , 07:43 PM

Institutional investors have invested nearly Rs 120 crore in shares of Mumbai-based realty company Suraj Estate Developers through the anchor book, which was launched for a day on December 15, just a day before the public issue opening next week. The subscription for the offer is scheduled to start on December 18 and will continue until December 20.

Suraj Estate Developers, in its filing to exchanges, confirmed the final allocation of 33,33,333 equity shares to anchor investors at Rs 360 per share, which is the upper price band. A total of 10 institutional investors participated in the anchor book, including SBI General Insurance Company, Tata Housing Opportunities Fund, Aditya Birla Sun Life AMC, LC Pharos Multi-Strategy Fund VCC, ITI Flexi Cap Fund, and Meru Investment Fund PCC-Cell 1. BNP Paribas Financial Markets, Societe Generale-ODI, Quantum-State Investment Fund, and IEGFL-Multi Opportunity were also part of the anchor book.

Out of the total allocation, 5,55,632 equity shares were allocated to two domestic mutual funds through two schemes, according to Suraj Estate.

The real estate developer is aiming to raise Rs 400 crore through an initial public offering (IPO), with the price band set at Rs 340-360 per share. The IPO comprises only a fresh issue portion, and there is no offer-for-sale component.

Of the net fresh issue proceeds, excluding IPO expenses, Rs 285 crore will be utilized for repaying debts. The company’s consolidated debt as of September 2023 stood at Rs 568.83 crore. Additionally, Rs 35 crore will be allocated for the acquisition of land or land development rights in the Mumbai Metropolitan Region, with the remaining amount reserved for general corporate purposes.

Established in 1986, Suraj Estate, led by Rajan Meenathakonil Thomas and his family, has developed residential and commercial properties in the South-Central Mumbai region. The company has completed 42 projects with a developed area exceeding 1.05 million square feet in the South-Central Mumbai region.